Thule Group presents two new Product Categories and updated long-term financial goals

2022-05-11 10:50:00

At today's Capital Markets Day in Hillerstorp, Sweden, Thule Group presents plans to enter the two new Product Categories – Car Seats and Dog Transport products. The company is also updating the sales growth targets communicated in spring 2021, which the company is tracking well ahead of.

Two new Product Categories
Thule Group continues the organic growth strategy that has been core to the company’s successful development since the IPO in 2014, by announcing the entry into two new organically developed Product Categories.

Thule Group will enter the Car Seat as well as the Dog Transport product categories in 2023.

“Both of these categories are characterized by traits that fit the Thule Group organization and the Thule consumer brand well”, says Magnus Welander, CEO and President, and continues. “Products that enable an active life, with a technical content that focuses on safety and ease of use and where consumers are prepared to pay for premium products designed by brands with strong quality and sustainability profile.”

Car Seats
Thule Group will in the coming years launch a broad portfolio of Car Seat solutions for global reach. The first major launch in the category will be for the European market with the launch of a Base, Infant Seat and Toddler Seat meeting the stringent i-Size demands.

The European models will be available in for consumers in retail in autumn of 2023. A North American portfolio and Booster seats will be coming to market the following 18 months.

“For us, the most important thing is that everyone in the car travels safely. With our deep knowledge about juvenile products and car safety, we are convinced that we can add value and win market share in the market of premium car seats. We estimate the premium segment to be a 14 Bio SEK market, 2022, and intend, as we broaden the product range, to become one of the leading players within the category over the coming years”, says Magnus Welander.

Dog Transport Products
Thule Group will, in the coming years, launch several products focused on Dog Transport with cars or bikes. The first major launch in the category will be a dog cage for SUV, estate and hatchback cars. This easy-to-use cage meets the Thule Group safety standards with crash-tests and meets standards for all type of car crashes like frontal collision situations, rear-end collision and voltage.

The cage will be available for consumers in retail in the spring of 2023, after which a number of bike and car travel products for dogs will be rolled out on a global basis.

“With an ever growing interest for dogs and with dogs more and more becoming family members, we are convinced that the market of premium car and bike dog travel products will grow in coming years. We estimate the market to be a 2 Bio SEK market, 2022, and intend to become a leading player within the category over the coming years as we broaden the product range”, says Magnus Welander.

From a financial reporting perspective the two new product categories will be grouped together with the current Active with Kids category that as of the second quarter 2022 will be called Juvenile & Pet Products.

Updated long-term financial goals
Since Thule Group's IPO in November 2014, the company's strong development has meant that the ambition level for long-term targets has been raised in several steps. The latest long-term financial targets were communicated in connection with the first quarter 2021.

“When summarizing 2021, it is satisfying to confirm that our impressive sales growth of +38% vs 2020 means that we are tracking several years ahead of our previously communicated long-term goal of doubling 2020 sales by 2030”, says Magnus Welander.
“We have therefore decided to update the sales growth target to double the 2021 revenue over the coming 9 years and reach SEK 20 billion by 2030. This means that the 2030 target has been raised with 4.4 Bio SEK as compared to the target presented 1 year ago, with the strong performance in 2021 and the entry into the new product categories of course being strong contributors to the higher growth ambition. The EBIT-Margin target of maintaining the current high levels of >20% and the recently increased Dividend target of >75% of Net Income will be kept on the same high level.”

Sales growth
20 Bio SEK by 2030
(previous target: Double 2020 sales by 2030, i.e. to reach 15.6 Bio SEK sales by 2030)

EBIT-margin
Maintain >20% EBIT margin
(same as before)

Dividend
>75% ordinary dividend, in relation to net income
(same as before)

Maintained long-term sustainability targets
Thule Group will continue the dedicated long-term sustainability work that has been an integral part of the company's long-term way of operating since its founding in 1942.

The long-term sustainability targets presented in April 2021 are kept at the same ambitious levels. These targets, in terms of environmental aspects, are closely linked to the company's decision in the autumn of 2020 to commit to the globally acknowledged Science Based Targets initiative (SBTi) and therefore have a clear focus on fulfilling the Paris Agreement's ambition not to increase the earth's average temperature by more than 1.5 ° C.

Scope 1
46% reduction, in absolute numbers, of greenhouse gases from our production sites, compared with the base year 2019.

Scope 2
100% renewable electricity at our own manufacturing sites and offices.

Scope 3
An absolute reduction of greenhouse gases by 28% related to purchased materials and upstream and downstream logistics, compared with the base year 2019.

In addition to the environmentally focused sustainability targets, Thule Group has additional long-term sustainability targets linked to, among other things, water consumption, recycling and health and safety. These targets are presented in more depth on the corporate website, www.thulegroup.com.

“Long-term sustainable and profitable organic growth remains our biggest focus”, says Magnus Welander. “The results we have delivered since the IPO in 2014 are clear proof that our strategy and our operational work have been successful. We are convinced that the defined strategy is right for Thule Group also in the future. Expected positive development in the future in terms of both market trends and our own ability to gain market share, in both existing and new product categories, lie behind our decision to enter new product categories and update our long-term financial ambition level. Our sustainability efforts, and therefore ambitious long-term targets also in this regard, are part of our natural DNA”, concludes Magnus Welander.

A more detailed presentation is available at the group’s website www.thulegroup.com/en/presentations.

MFN